Triumph Group Inc. (TGI) reported fourth quarter of fiscal 2013 results that ended Mar 31, 2013. Adjusted earnings from continuing operations of $1.68 per share surpassed the Zacks Consensus Estimate of $1.59 by 5.7% and also increased 7.0% from the year-earlier adjusted profit of $1.57.

Adjusted income from continuing operations came in at $6.21 per share in fiscal year 2013, which climbed nearly 24% from $5.01 posted in fiscal year 2012.

During the quarter as well as full year, the company registered strong results across all its business segments. Apart from completing two important acquisitions – Embee Inc. and Triumph Engine Control Systems (previously known as Goodrich Pump & Engine Control Systems) from United Technologies Corp. (UTX) – Triumph offloaded two of its Aftermarket Services’ Instruments Companies. These acquisitions are expected to contribute significantly to revenue going forward.

Revenue

In the reported quarter, net sales inched up 4.2% year over year to $986.3 million, of which organic growth accounted for 2%. The reported figure also beat the Zacks Consensus Estimate of $950.0 million.

Segment-wise, sales from Aerostructures surged to $720.7 million from $714.2 million in the prior-year comparable quarter, the growth being entirely organic. Aerospace Systems revenue grew 21.4% year over year to $184.1 million, while Aftermarket Services increased marginally to $83.9 million from $83.1 million in the year-ago quarter.

Full year fiscal 2013 top line grew 8.6% year over year to $3,702.7 million, of which organic growth was 8%.

Margins

Operating income in the fiscal fourth quarter plummeted 38.4% to $134.4 million from $183.2 million in the year-ago quarter. Operating margin decreased to 11.5% in the reported quarter from 19.4% in the fiscal fourth quarter of 2012.

On a segmental basis, Aerostructures reported a 6.8% decline in operating income, to settle at $110.9 million. However, Aerospace Systems’ operating income grew 26.5% to $33.4 million. Also, Aftermarket Services displayed a rise of 18.2% to reach $13.0 million.

For fiscal 2013, the company’s operating income climbed 3.2% year over year to $531.2 million. All three business segments at Triumph Group executed well and delivered year-over-year operating margin expansion.

Balance Sheet

Exiting the fiscal fourth quarter, Triumph’s cash and cash equivalents were $32.0 million compared with $29.7 million at the end of the prior-year quarter. Long-term debt (including the current portion) was up 14.8% to $1,329.9 million from $1,158.9 million in the prior year. The debt-to-capitalization ratio in the reported quarter stood at 39.4%.

Cash Flow

Cash from operations, before pension contributions, was $453.2 million in fiscal 2013; up from $349.1 million in the year-ago period. Capital expenditures climbed to $142.8 million during the year from $94.0 million in the year-ago quarter.

Guidance

For fiscal year 2014, the company expects sales in the range of $3.8 billion to $4.0 billion and earnings per share from continuing operations of $5.65 to $5.75 per diluted share. Adjusted earnings per share from continuing operations for fiscal year 2014 are expected in a band of $6.30 to $6.40 per diluted share.